The Indonesia farm equipment market is anticipated to grow at a CAGR of 5.51% over the forecast timeline, increasing from US$4.194 billion in 2025 to US$5.484 billion by 2030.
Farm equipment is a type of machinery and tools used in the agricultural landscape to efficiently produce crops. It includes tools, devices, and machinery, like tractors, plowing machines, implanters, harvesters, and planting tools
The Indonesian farm equipment industry is rapidly growing because of various other attributes, especially rising agricultural production, mechanization, government support, and technological advancement.
Farmers produce more to fill the foods that have a high increasing demand while increasing efficiency, which the Indonesian government actively promotes mechanization through subsidies and incentive programs.
Moreover, one of the major driving factors behind the Indonesian farm equipment market growth is attributed to the higher participation of the younger population in the nation. With this participation, the introduction of new machinery and equipment with advanced technologies will increase in the nation.
The Food and Fertilizer Technology Center (FFTC), in its report, stated that in Indonesia, the total number of farmers between the ages of 20 and 39 years was recorded at about 11.557 million in 2022. In contrast, about 17.027 farmers were between the age group of 40 to 59 years. The total number of farmers between the age of 15-19 years was about 1.139 million, and 8.979 million farmers were above the age of 60 years.
One of the key factors pushing the Indonesian farm equipment market is the growing agricultural production in Indonesia. The Indonesian agricultural sector observed major growth in recent years with the introduction of new technologies, equipment, and farming solutions. With the rise of agriculture production in the country, the total demand for farm equipment, like tractors, harvesters, and implanters, among others, is also growing significantly.
The Foreign Agriculture Service of the US Department of Agriculture, in its report, stated that the total agricultural production of Indonesia grew in the past few years. The agency also stated that in 2023-24, the total production of rice was estimated at 33,020 thousand tons. In contrast, the total production of corn, peanut, and soybean was estimated at 12,700 thousand tons, 880 thousand tons, and 360 thousand tons respectively. The total production of rice and corn is estimated to reach about 34,000 thousand tons and 13,200 thousand tons, respectively, in 2024-25, according to the agency.
In addition, increasing population and income will indeed lead to higher food demand, so farmers in the region will need to increase agricultural production through mechanization, including tractors, harvesters, and irrigation facilities. Furthermore, the Indonesian government promotes agricultural mechanization to improve productivity and competitiveness through subsidy and incentive programs for the target farmers using agricultural equipment, contributing to the rise in the market in the coming years.
The Indonesian farm equipment will witness an increase in advanced harvesting and threshing equipment demand as they increase crop productivity and efficiency by decreasing labor costs. Additionally, proper harvesting and threshing machinery can minimize post-harvest losses by avoiding harm to crops amid and after harvest, as well as guarantee timely harvesting and processing, lessening crop spoilage
Moreover, the supportive government initiatives and policies to promote farming machinery will also propel the market expansion. For instance, as per ITA 2024 data, PT PLN, the state-owned electricity company, is executing the "Electrifying Agriculture" program, providing incentives and grid expansion to empower farmers to shift to electric machinery.
This function will also witness a significant rise due to increased demand for efficient harvesting solutions. The Indonesian government's aspiring crop production targets to fulfill the increasing domestic demand and ensure food security will lead to a rise in the market, as farmers will be required to increment their crop yields and productivity to attain these targets. Achieving these targets will directly contribute to harvesting and threshing segment growth in the Indonesian farm equipment market in the coming years.
Following this, the Indonesian government's analysis reported that there is a consistent per capita rice utilization of 139.15 kg/year, which would lead to the requirement increase in rice production anticipated to rise from 38.02 million tons during 2020-2025 to 47.9 million tons by 2030-2040. This will result in a substantial increase in market growth over the coming years.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Indonesia Farm Equipment Market Size in 2025 | US$4.194 billion |
| Indonesia Farm Equipment Market Size in 2030 | US$5.484 billion |
| Growth Rate | CAGR of 5.51% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| List of Major Companies in Indonesia Farm Equipment Market |
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| Customization Scope | Free report customization with purchase |